2020 will see a profound change in the outlook for many fund managers. In spring and especially in autumn, many institutional investors in cryptocurrencies got in touch. A main motivation for these managers is the safe haven of virtual currencies and especially Bitcoin. There are many comparisons to gold made by institutional investors. In addition, there are several triggers: PayPal’s announcement in a statement stating that customers « can buy, sell, and hold Bitcoin and other digital assets through wallet accounts ». online of the company « , the opening of the famous JP Morgan bank for cryptocurrencies with in particular two large exchanges of cryptos and Bitcoin (Coinbase and Gemini) among their customers, the introduction (next?) through Facebook of their own virtual currency (the Diem) etc.
Discover 8 managers of hedge funds and traditional funds that invest in virtual currencies in this article.
Stanley Druckermiller: Bitcoin as a safe haven
He shows his interest in cryptocurrency because of its nature as a safe haven. For him, the 13 years of Bitcoin’s existence and its gradual democratization are interesting signals. Although he insists on owning far more gold than Bitcoin, his interest in cryptocurrency has not gone unnoticed.
Paul Tudor Jones: Bitcoin as a hedge against inflation
Paul Tudor Jones is the famous billionaire manager of Tudor Investment Corp. He started recommending Bitcoin in the spring and made a public statement in the fall. On the Squawk show on CNBC, Paul Tudor Jones announced that he had 1% to 2% of his wealth in crypto.
For him, Bitcoin acts like gold as a hedge against inflation. The positioning in cryptocurrencies is justified by monetary policy inflation concerns.
Rick Rieder: cryptocurrency as a fund trend
Rick Rieder is the Chief Investment Officer (CIO) at BlackRock, the world’s largest manager. According to Forbes, Rick Rieder is the head of a $ 1.2 trillion fund. Like Tudor Jones, he compares Bitcoin to gold and also highlights the interest it arouses in younger generations. In particular, he insists on the sustainability of the cryptocurrency:
“I think cryptocurrency is here to stay. I think it’s sustainable and we’ve seen central banks open up to digital currencies. «
Bill Miller: Bitcoin, in great demand and with limited supply
Bill Miller is a pretty famous fund manager. In particular, he is the former CIO of Legg Mason Capital Management. In an interview with Business Insider, Miller showed his interest in cryptocurrencies, mostly Bitcoin.
Several reasons prompt him to defend the cryptocurrency. First, that demand is growing faster than supply, which is structurally limited. Added to this are monetary policy inflation concerns. Bill Miller thus draws the parallel between Bitcoin and gold or certain goods that are considered safe havens:
« I think all big banks, all investment banks, all big wealthy companies will end up being invested in Bitcoin or whatever it is, gold or other commodity. » «
Eric Peters and Alan Howard: an increase in positions in Ether and Bitcoin
Eric Peters is the CIO of One River Asset Management. In late 2020, he announced that he had bought almost $ 600 million worth of Bitcoin and Ether. The fund plans to increase its positions to $ 1 billion in 2021.
For his part, Alan Howard is an English billionaire and co-founder of the Brevan Howard Asset Management hedge fund. Alan Howard has already invested in Bitcoin. He recently showed his indirect interest in virtual currency with Brevan Howard’s acquisition of 25% of One River Asset Management in October.
JP Morgan: Pro-Crypto Manager?
In 2017 and 2018, Jamie Dimon, chairman of JP Morgan, was one of the most critical cryptocurrencies. He has now revised his position and JP Morgan has even established itself as an advocate for the rise of cryptocurrencies.
It must be said that JP Morgan launched its own cryptocurrency JPM Coin, which is indexed to the dollar, to enable transactions between institutions.
In a statement sent by Bloomberg, analysts at JP Morgan also claimed, « If pension and insurance funds in the US, UK, Eurozone and Japan allocate 1% of their assets in Bitcoin, it would generate additional demand of 600 billion euros, » that is, the triple capitalization of bitcoin in fall 2020.
BlackRock doesn’t want to be overtaken by virtual currencies
BlackRock is the global wealth management giant, managing nearly $ 7 trillion. Two more recent elements have caught the attention of the crypto world: the recognition of the growing weight of cryptocurrencies by Larry Fink, CEO of BlackRock, on the one hand, and the inclusion of blockchain in corporate strategies. somewhere else.
Indeed, the world leader in management has launched a job offer aimed at recruiting a profile with at least a year of experience to « articulate the technological foundations of the blockchain […] ». The fact that the overall valuation of crypto is approaching $ 1 trillion at the beginning of 2021 is forcing managers to consider what « could possibly develop in the world market », according to Larry Fink.
Goldman Sachs in the cryptocurrency race
Goldman Sachs seems to be following JP Morgan’s path. In the summer of 2020, Mathew McDermott was named head of the bank’s digital assets. In an interview, he said the possibility of starting a Goldman Sachs cryptocurrency:
“We are exploring the commercial viability of creating our own digital fiat currency token, but we’re just getting started as we continue to work on potential use cases. « »
McDermott also showed his belief in developing a crypto industry. He spoke of the possible development of a « financial system in which all assets and liabilities are combined in the blockchain » within 5 to 10 years. Golman Sachs is entering a cryptocurrency race. Cryptocurrency race that is becoming increasingly financial due to the position of many competitors.
The growing interest of the financial sector in active cryptos
The 2020 crisis showed that Bitcoin is resilient in the face of uncertainties, which has piqued the interest of many hedge fund managers. In autumn 2020, the interest of large investors in Bitcoin grew. Although some are still skeptical, such as Georges Soros or Ray Dalio, virtual currencies are increasingly perceived by these managers as a safe and technological asset. The largest banks and management companies are therefore showing an increasing interest in digital assets which, if only through their capitalization, develop obvious financial and technological interests.
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Which crypto should be bought in 2020?
6 cryptocurrencies to buy for 2020 and beyond
- Bitcoin (BTC) First of all, I’m not going to be original, but rather efficient. …
- Basic Attention Token (BAT) The success of Basic Attention Token never fluctuates month after month. …
- Enjin Coin (ENJ) …
- Binance Coin (BNB) …
- Nexo (NEXO) …
- Ethereum (ETH)
What future for Ethereum?
The price of ether rose 483% in 2020. That’s more than Bitcoin, which rose + 303% over the past year. Ethereum’s valuation is now at $ 110 billion (570 billion for Bitcoin). In late 2020 and early 2021, many records will be signed in the cryptocurrency market.
What is the future of bitcoin?
JP Morgan believes the price of Bitcoin could hit $ 146,000 in the long run. In a notice released on Jan. 4, 2020, financial holding JP Morgan estimates that the price of Bitcoin could hit $ 146,000 in the long term. …
When to buy bitcoin
According to crypto specialists, investments in Bitcoin are likely to remain strong in 2021 as Bitcoin recently set a new record of over $ 35,000.
Why buy bitcoins?
Bitcoin is an extraordinary new financial asset. Its blockchain technology gives it undeniable utility. It can be used as a decorrelation asset for an asset allocation portfolio through quantitative financing. Bitcoin is a very notable new financial asset.
Is It Time To Invest In Bitcoin?
Bitcoin, a Risky Investment Note that Bitcoin is based on an unregulated market and this virtual currency has no official price. It is an IT environment with its own rules that may prove unsuitable for people who do not have sufficient technical knowledge and skills.
Is It Too Late To Invest In Bitcoin?
With each new BTC high, many people thought it was too late to invest. This happened when prices hit € 10, € 50, € 200, € 1,000, etc. … And although the prospects for Bitcoin are not the most exciting, it is still possible to invest in Altcoins.
What is the most profitable cryptocurrency?
In our opinion, the most promising cryptocurrencies for 2020 and the coming years are the Tezos (XTZ), the Stellar Lumens (XLM) and the ChainLink (LINK), the prices of which have risen sharply in recent months.
What are the best cryptocurrencies?
What are the best cryptocurrencies of the year?
- Bitcoin – cryptocurrency No. 1. …
- Ethereum – cryptocurrency No. 2. …
- Ripple – Cryptocurrency No. 3. …
- Bitcoin Cash – cryptocurrency No. 4. …
- Litecoin – cryptocurrency No. 5. …
- Cardano – cryptocurrency no.6 …
- NEO – cryptocurrency no.7 …
- 1- Go to the Alvexo online trading platform:
Which cryptocurrency should be invested?
|Surname, surname||Market capitalization||Growth in 1 year|
|Bitcoin (BTC)||over $ 140 billion||+ 156%|
|Ethereum (ETH)||+ $ 22 billion||+ 89%|
|Ripple (XRP)||more than $ 9 billion||– 9%|
|Bitcoin Cash (BCH)||+ $ 4.8 billion||+ 85%|